Agricultural Economics Series 6

July 1965

MINIMUM OPEN LAND REQUIREMENTS
FOR A

$5,000 FARM INCOME, WIREGRASS AREA Lower Coastal Plains ALABAMA
8L'

UIBlV

1

SFP
9 j BU U I'r RS\ N f

AGRICULTURAL EXPERIMENT STATION OF AUBURN UNIVERSITY
E. V. Smith, Director Auburn, Alabama

In cooperation with FARM PRODUCTION ECONOMICS DIVISION ECONOMIC RESEARCH SERVICE U. S. DEPARTMENT OF AGRICULTURE

Acknowledgement

The study on which this publication

is

based

is

part of a Regional Oppor-

Research Project S-42, "An Economic Appraisal of Farming Adjustment tunities in the Southern Region to Meet Changing Conditions." is financed in This

Regional Project It is

part from Research and Marketing Act funds. of Agricultural Alabama, Economics Arkansas, of

a cooperative

effort of the Departments

the following State Agricultural Georgia, Kentucky, Louisiana,

Experiment Stations:

Mississippi,

North Carolina,

Oklahoma,

South Carolina,

Tennessee,

Texas,

and Virginia,

and the FarmProduction Department of Agriculture. University of Arkansas, University of

Economics Division, Dr. is John W White,

Economic Research Service, Vice-president advisor,

for Agriculture, James H.

the administrative is

and Dr.

White,

Arkansas,

chairman of the Regional Committee. Committee, sponsored by the was

The Southern Farm Management Research

Farm Foundation and the Southern Agricultural Experiment Stations, helpful in the development of this Regional Project.

The overall purposes of this regional project are guides to farmers when choosing among alternative as those opportunities and (2) are affected

(1) to provide opportunities, prices and

production in in

especially technology, and

by changes

to provide guides

to persons engaged programs.-

developing

administering public agricultural

TABLE OF CONTENTS

SUMMARY.. INTRODUCTION

........
5 ..
. . . . . . .

DESCRIPTION OF THE AREA.. METHOD OF ANALYSIS ASSUMPTIONS Enterprises Considered Enterprises Not Considered Land and Allotments.... Labor. Capital..... Prices Machinery
........

-

6 7 9 9 10

.
Set o Eteprse

11 11 12
-(

13 13

Aloten

Lves

Overhead Cost .............

13 15
. . " " . " "

MINIMUM OPEN LAND REQUIREMENTS A. B. C. Specified Land Values, Specified Labor Prices Specified Cotton -Prices and Three 0
"

15 0 0 0
"

0 0 18 19 21 23 27 29

ADJUSTMENTS IN FARMY NUMBERS IMPLICATIONS LITERATURE CITED
APPENDICES
.000

SUMMARY

The area to which the study applies is

the

fairly homogeneous,

12-

county area in southern Alabama commonly called the Wiregrass. of the area are capable of producing practices are used. good crop yields if

The soils

good management

Cotton and peanuts are the major cash crops. the minimum acreage income of to

The objectives of this study were to determine of open land that would be required

for a labor and management levels. It

$5,000 under various price and allotment

was also planned farm numbers if all

determine the adjustment that would be required in

farms presently smaller than this minimum acreage were minimum acreage. The procedure for the study was: acreage in the area, (2) (1) to determine

increased to the

the open land for various crops

to develop enterprise budgets (3)

and livestock activities,

to determine the minimum open land requireallotment,

ment and the optimumenterprise organization for various price, and enterprise considerations, and numbers if all farms smaller

(4) to determine the reduction in farm into farms of

than the minimum were combined

the minimum size. Crop budgets were developed soybeans, grain sorghum, for cotton, peanuts, hay. oats, corn, wheat,

and Coastal bermudagrass cow-calf, and

Livestock budgets Minimum open conto that

were developed for hogs,

steer enterprises.

land requirements were determined: sidered, (2)

(1) with all

the above activities

with Coastal bermudagrass and (3)

hay production restricted

used on the farm, not permitted in

with Coastal restricted

and with hogs and steers

the enterprise combination.

With each of the above enterprise groupings, requirements were determined for 5 variations in land price. Also, with Coastal hay production

limited to that used on the farm, investigations were made using 12 cotton price and allotment combinations, and 3 variations in labor price. The minimum open land required to obtain the $5,000 income ranged from 105 acres to 192 acres. The 105-acre solution occurred when all The

activities were considered and no interest charge was made for land.

192-acre solution occurred when hogs, steers, and hay selling were not considered as activities, and the interest charge for land was based on a value of $210 per acre. With any one enterprise grouping, increasing the On the

value of land had a noticeable effect on the minimum requirement.

other hand, labor price had very little effect because very little hired labor was required for any of the organizations. Cotton and peanuts were planted to the acreage allotment prices near or above current price. limit with

Only when the price of cotton was rein the

duced to below 26 cents per pound of lint was cotton replaced organization.

Peanut prices were not varied, thus no estimate was made

of how much reduction in peanut price could take place before peanuts are replaced in the optimum program.

When Coastal bermudagrass hay for sale was considered in the programming model, it was planted on more than 50 per cent of the open land When

acreage, and used most of the land not taken by cotton and peanuts Coastal production ·was limited to that used on the farm, corn, oats, steers, and hogs were in the optimum organization. More than 75 per cent of the farms

in the area currently have fewer

acres than the smallest of the programmed minimum requirements (105 acres)

for the $5,000 net return.

If those farms with less than the minimum farm numbers 192

acreage were raised to the minimum size, the reduction in would be at least 43 per cent.

For the largest size requirement, farm numbers

acres of open land, there would be a reduction in cent. The study does policy goal. not infer

of 62 per

that a $5,000 return is,

or should be,

a

The purpose was to determine the resource requirements Farmers can use this information in and it should be helpful to policy

necessary for this income level. studying adjustment makers alternatives

in evaluating policy alternatives.

MINIMUM OPEN LAND REQUIREMENTS FOR $5,000 FARM INCOME, WIREGRASS AREA (Lower Coastal Plains), ALABAMA

Gary C. Jones* P. L. Strickland, Jr.** Earl J. Partenheimer***

Introduction Some segments of American for many years. agriculture have had a low income increased, problem average

Even though average farm income has

nonfarm income has increased more rapidly. This income problem still exists even though American agriculture in technology in the has

had, during the last 2 decades, the greatest advancements ever achieved and today world. It is the most efficient agricultural

economy

exists even though the number of farms has

been steadily de-

clining for several years. farmers to produce consumers will utilize tended to depress increasing demand

Improving technology has permitted American of farm commodities to farmers. The than the American over-supply has same time, the

larger quantities at "fair"

prices

the farm price of commodities. for nonfarm items has increased

At the

increased the price

of raw mater-

ials; and consequently has

the cost of many farm inputs.

*Resigned omics,

- Formerly Instructor,

Department

of Agricultural

Econ-

Auburn University.

**Agricultural Economist, Farm Production Economics Division, Economic Research Service, U.o S. Department of Agriculture, stationed at Auburn University, Auburn, Alabama. ***Associate Professor, University. Department of Agricultural Economics, Auburn

The adoption of new technology

in most instances has required

farmers

to utilize more capital in the farm operation. ing low incomes

Many farmers who were earnand have been These farmers

and operating small farms did not have,

unable to obtain, the capital to adopt new technologies. have become relatively less efficient has worsened. In studying farming adjustment alternatives, and their relative

income position

one consideration In

is making

whether to stay in farming or to move into nonfarm employment. such decisions, quantities .individual farmers could use information

about the

of land and other resources needed

to obtain an equivalent In studying the same

income from farming as from nonfarm employment. problem, farm leaders and policymakers

need information about the number farm incomes were

of farmers that would need to have other employment if raised to an equivalent level of average nonfarm income.

The objectives of the study on which this report (1.) to determine the minimum open land required

is

based were: $5,000-return and specified

to obtaina technology

to operator's

labor and management using advanced levels, (2)

cotton price and allotment tion of enterprises requirements; capital)

to determine the optimum combinaand minimum land

consistent with the assumptions

(3) to determine the amounts of other resources (labor and organizations, and (4) to determine of

required by these enterprise

the number

of farms currently below the minimum size and the number in the area if

farms that could exist minimum size.

these farms were enlarged to the

Description of the Area The geographic area to which this study applies is part of the Lower ·It includes 12

Coastal Plains of Alabama,

commonly called the "Wiregrass."

counties: Geneva,

Barbour, Butler, Coffee, Conecuh, Covington, Houston, Monroe, and Pike (Figure 1).

Crenshaw,

Dale,

Henry,

Open land soils vary from 2 to 10 per cent in of slightly acid soils of a loamy sand texture. and potash are common. However, good crop yields

slope and are composed in calcium

Deficiencies

are obtained with imin the area is 51

proved management practices. inches.

Average annual rainfall

Length of the growing season ranges from 240 to 255 days. farms.

The trend in the last decade has been toward fewer and larger In 1959, the area contained 20,070 farms averaging 132 acres Livestock was listed as the primary source of income the farms with 26 per cent classified as cotton farms. Census as 48 years. figures for 1959 indicate the average in

size.

on 39 per cent of

age of farm operators Only 21 labor.

The majority of labor was supplied by the family. farms in the area reported any hired

per cent of the commercial

Method of Analysis Linear programming was used to determine the optimumcombination of enterprises that would require the least amount of open the $5,000 operator's nique also calculated required labor and management return. the quantity of land to obtain

The programming tech-

labor and capital that would be

to operate this combination of enterprises.

The decision to minimize open land was made because scarcity of open land is usually the most limiting factor on small farms. Land is the major

capital item on most farms,

therefore minimizing

land would provide almost as

the same solution as minimizing capital. in most land transactions factors

Land prices are variable,

other than economic value play a role in land requirement places less

determining pressure

the selling price.

Minimizing the land price.

on determining

an accurate

8

Figure

1.

Map

of Alabama With

Outline

Portion Denoting the Area of Study.

Census data on farm size distributions by acres of cropland harvested and by total acres of land were used to determine a farm size distribution by open land acreage. From these data, a cumulative disThis

tribution of open land by per cent and distribution was used to determine size level and the acreage

size of farm was determined.

the number

of farms below the minimum This open land the

of open land on these farms.

acreage was divided by the minimum acreage required

to determine

number of farms of the minimum size which could be reorganized acreage.

on this

The difference between the number of farms below the minimum

size now in the area and the number of the minimum size that could be reorganized on this acreage is the minimum adjustment gap in farm num-

bers required to raise all to at least $5,000.

farm operator's

labor and management return

Assumptions The input-output budgets used for this study were based management practices. on improved

These practices are those recommended by the

Agricultural Experiment Station and the Cooperative Extension Service of, Auburn University and being used by the best farmers in the area. 5-year average conditions, yields and the expected yield are shown The

levels under normal weather in Table 1.

using such technology,

Enterprises Considered Crop enterprises wheat, soybeans, considered include cotton, peanuts, corn, hay... oats, Livestock and ·

grain sorghum, include

and Coastal bermuctagrass

enterprises hogs. hay for

considered

a cow-calf operation, ... feeder steers, to a l-year-in-3 rotation.

Peanuts were restricted

All grain and

the livestock enterprises

had to be grown on the farm.

10 Table i. Average Per Acre Yields for 1958 Through 1961 and Per Acre Yields Assumed for Study, Specified Crops, Wiregrass Area, Alabama

Crop

Unit

1958

Average-yield per acre 1961 1959 1960
Aea

Assumed

Cotton, Corn Peanuts Soybeans

lint

Lb. Bu. Lb. Bu.

387 31 1,011 18

315 25 745 15

376 26 1,114 20

297594 34 1,037 23 55 1,800 22

b

1960 and 1961. Source: Alabama Agricultural Statistics, aThese yields were predicted for average weather conditions when recommended production practices were followed. bThe assumed yield is 625 pounds of lint less a 5 per cent machine picking loss.

The input-output coefficients used for these enterprises cost and returns budgets for the Wiregrass Area (3, 4).1

are based on

Enterprises Not Considered Several enterprises were not considered because of agronomic and econcon-

omic conditions. ditions somewhat

Dairy enterprises were not considered limit the entry of new dairy farms.

since market

Fruits

and vegetables

were not considered because they are usually grown as speciality crops on those farms producing them. If a large number of farmers their profitableness began producing

a large crease.

quantity of vegetables,

would greatly de-

Poultry enterprises were not considered because they require no it is not feasible to require all feed to be

open land for operation and grown on the farm.

Some programming was done that allowed

Coastal bermuda-

grass hay for sale as an alternative.

This activity entered the optimum

iNumbers

in

parenthesis refer

to Literature

Cited on page

27.

11 programs at fairly high acreage levels. If Coastal hay were produced for

sale by a large number of farmers at the levels indicated by these programs, markets would not likely be available and the price would be greatly are

depressed.

Results with and without Coastal hay for sale activities

presented in the results for comparisons. The excluded enterprises might be profitable vidual farmers to consider. entire area, However, in alternatives for indi-

appraising alternatives

for the

use of these enterprises

on all

farms would be impractical.

Land and Allotments Land classifications used in this study were determined (6). Open land is from Soil I

Conservation Service definitions

capability classes (Table 2).

through IV land currently being used for cropland Plowable land land in is open land in and II classes I through

and pasture

III.

Row cropland is classes

open lllw.

classes I

and one-half the open land in

ile and

Cotton and peanuts are the only crops being grown extensively area under acreage controls.

in

the

Current (1963) allotments determined as a

percentage of open land were used as restrictions on both of these crops. To appraise quirement, the effect that allotment levels might have on the land reto 55 per

the allotment level of cotton was also restricted

cent of current, 85 per cent of current, and 115 per cent of the current allotment level. Labor The ,productive labor of one full-time farm. No other family labor was considered operator was assumed for each available. Necessary seasonal These variations were not made on peanut allotments.

labor needed

at planting and harvesting

time was

added to each budget. If full-time labor

The wage rate for this

labor was 60 cents an hour. on the farm it

other than the operator were needed rate of $1.00 per hour.

could be hired at a

12
Table 2. Wiregrass Soils, by Current Use and Capability Class and Classification as Used in Study*

Current use
Class

Cropland Acres

Pasture Acres 26,525 86,405 3,065 10,600 109,352 50,926 15,634 36,492 47,012 7,426

I IIe IIs IIw IIIlle IIIs IIIw IVe IVs IVw

151,804 461,967 18,222 26,472 258,711 228,268 21,083 44,468 105,674 2,272

Total Classification used in study

1,318,941

393,437

Definition

Acreage

Open land Plowable land Row cropland

Class I through IV cropland and pasture cropland and Class I, II, and III pasture and Class I, II, and Class Ille IIIw cropland and pasture

1,712,378 1,469,034 987,450

*Current use and capability classes were determined from county work sheets for the Alabama Soil and Water Conservation Needs Inventory. The definition of the land capability classes are found in Alabama Soil and Water Conservation Needs Inventory published by the State Soil Conservation Committee, 1961.

To appraise the effect of wage rates on optimum solutions, programs were computed with the rate of seasonal and hired labor at 50 per cent and 100 per cent above base rates. Capital Capital, in unlimited both operating and quantities. investment, was assumed to be available capital

All operating and non-land

investment

13
was charged at an annual rate of 6 per cent. charged at an annual rate of 5 per cent. Prices Input prices used in the study were determined in the Wiregrass Area from a survey of farm (Appendix A Table The investment in land was

supply and equipment dealers

1).

Product prices, except for cotton, were assumed as current for trends and cycles (Appendix A Table 2).

prices adjusted from 5Statistics

They were determined

year (1958-1962) monthly averages (1, 2).

taken from Alabama Agricultural

The cotton price was varied from 20.8 cents to 36.4 cents per to further augment the appraisal of varying the cotton

pound of lint

allotment level. pound of lint.

The assumed current cotton price was 31.2 centsper

The assumed current land price was estimated

on the basis of a survey and

of selected county agents, Farmers Home Administration supervisors, land appraisers in the area.

This price represents the value of an acre No value was determined for woodland

of open land with no improvements. and wasteland. After the base

land price was determined, to 100 per

programs were cent above the

computed with land price varied from no charge current price. Machinery Full ownership of a two-row tractor

and a full complement

of land

preparation, cultivating, and some harvesting equipment was assumed for each situation (Table income for interest 3). An overall charge was made against gross on this component of equipment. farm

and depreciation

Overhead Cost An overall charge for overhead cost was also made against the gross include such items as telephone,

income of the farm operation.

These costs

14
Table 3. Assumed Complement of 2-Row Machinery, Wiregrass Area of Alabama

Item

Size

New costa Dollars

Planting Tractor Bottom plow Disc harrow Section Planter Pre-emergence equipment Fertilizer attachment Fertilizer spreader Grain drill Cultivation Cultivator Rotary hoe Post-emergence equipment Sprayer Harvesting Corn picker Grain elevator Combine Mower Side-delivery rake Hay baler Peanut digger-shaker Peanut combine Rotary mower

2-plow 2-bottom 6 ft. 2-section 2-row 2-row 2-row 8 ft. 8 ft.

2,500 250 240

100
360

90 100
275 460

2-row 2-section 2-row 6-row

340 200 50 300

1-row pull 6 ft. PTO 7 ft. 8 ft. sm. twine 2-row 7 ft.

1,200 375 2,050 350 500 1,750

450
3,000 430

aBased on a 1962 survey of machinery and equipment dealers area.

in

the

bookkeeping, Table 3). acre. to the head.

tax service,

liability

insurance,

and truck use (Appendix A

Also,

real estate

taxes were charged at a rate of $1.00 per

Insurance on livestock, buildings, and machinery sheds were charged individual enterprises using them or as a part of machinery over-

15
Minimum Open Land Requirements Minimum land requirements and farm organizations were ccmputed for 5 land value levels with 3 different sets of enterprise possibilities, 3 labor price levels, and 12 combinations allotment levels. The five land values were: per acre, per acre. (1) full ownership (no charge), and (2) $52.50 (5) $210 of cotton price and cotton acreage

(3) $105 per acre (the base),

(4) $157.50 per acre,

The 3 labor charges were (1) base - $1.00 per hour for regular

labor and $0.60 per hour for seasonal labor, (2) 50 per cent above base, and (3) 100 per cent above base. Cotton allotment levels were 55, 85, 100,

and 115 per cent of 1963 allotments.

The 1963 allotment level is referred Cotton price

to as the "current' level in the remainder of this report. levels were 20.8 cents, lint.

26 cents, 31.2 cents, and 36.4 cents per pound of (1) all enter-

The three sets of enterprise considerations were

prises including Coastal bermudagrass hay for sale,

(2) all enterprises

except selling of Coastal hay, and (3) all enterprises except Coastal hay selling, hogs, and steers. The complete optimum organizations for each

of these situations are presented in Appendix B. The situation that most nearly approximates the current conditions is: current cotton acreage allotment, cotton price at 31.2 cents, land and all enterprises this will

price at $105 per acre, labor cost at base price, considered except hay selling.

In the following discussions,

be the base situation; the discussion will concern the changes that occurred when the base assumptions were changed. A. Specified Land Values, Three Sets of Enterprise Alternatives When Coastal bermudagrass hay production for sale was permitted, minimum open land requirement to produce the $5,000 net return ranged the

16
from 105 acres to 130 acres as the land charge was to $210 per acre (Table 4A). In all increased from no charge cotton and on 57 land.

of these organizations,

peanuts were planted to their full allotment. per cent of the open land and a For some farmers,

Coastal was planted

corn-hog enterprise used

the remaining land in

planting more than one-half of their

Coastal if

hay to be sold could be a profitable adjustment alternative all farmers

However,

in the area reorganized on the basis of these optimum programs, At the assumed

more than 975,000 acres would be used for Coastal hay.

yield of 5 tons per acre, this acreage could produce almost 5 million tons of hay, compared with 43,000 tons of hay sold by all Alabama farmers in

1961 (2).

These magnitudes and comparisons were the basis

for removing

Coastal hay production for sale from the remainder

of the analyses.

When Coastal hay production was limited to that used on the farm, the minimum open land requirements ranged from 120 acres to 154 acres (Table 4B). This was an increase of 14 to 18 per cent. Cotton and pea-

nuts were planted to the maximum of the allotment. still in the program. in

Corn and hogs were

Oats for sale and a steer enterprise using corn place of the Coastal hay. were eliminated from consideration,

silage were added

When the hog and steer enterprises or the farm was organize land requirements ranged

into a crop-beef cow system, the minimum open from 153 acres with a land value of $52.50 per (Table 4C). Cotton,

acre to 192 acres with a land value of $210 per acre peanuts, were in corn, .... nd a oats were the crops grown.

From 13 to 16 beef cows increases the open

the organization.

Increasing

the land value, but in

land required this

to obtain the $5,000 net return,

no instance did in the opti-

increase affect the relative proportion of enterprises Thus eliminating enterprises

mum organization.

from consideration

17 Table 4. Estimated Minimum Open Land Requirements and Enterprise Organizations for a $5,000 Return to Operator's Labor and Management, Specified Land Values and Enterprise Considerations, 31.2 Cents Per Pound of Lint Cotton Price, Current Cotton Allotments, Wiregrass Area (Lower Coastal Plain), Alabama

Enterprise considerations and optimum organization Unit

0

Land value per acre $52.20 $105 $157.50

$210

A.

All specified

enterprises acre acre acre acre acre acre no.

considered 104.9 11.5 13.1 14.7 60.3 5.3 4.6 110.1 12.1 13.8 15.4 63.3 5.5 4.8 115.9 12.8 14.5 16.2 66.6 5.8 5.1 122.3 13.5 15.3
17.1

Total open land Cotton Peanuts Corn Coastal Pasture for hogs Sows B.

129.5 14.2 16.2

18.1
74.4 6.6 5.7

70.3 6.1 5.4

Coastal bermudagrass hay selling excluded Total open land Cotton Peanuts Corn acre acre acre acre acre acre acre no. no. 120.3 13.2 15.0 34.4 28.0 6.7 23.0 28.4 5.1 127.2 14.0 15.9 36.4 29.6 7.1 24.2 30.1 5.4 135.0 14.8 16.9 38.6 31.4 7.6 25.7 32.0 5.7 143.7 15.8 18.0 153.7 16.9 19.2

41.1
33.4 8.0 27.4 34.0 6.1

44.0
35.7 8.6 29.3 36.4 6.5

Oats
Corn for silage Pasture Steers

Sows
C.

Coastal hay, hogs, and steers excluded Total open land Cotton Peanut s acre acre acre acre acre acre no.
~p

152.7 16.8

19.1
52.2 42.9 21.7 12.9
I

164.0 18.0 20.5

Corn
Oats Pasture and hay Beef cows
rr _ __._

56.1 46.1
23.3 13.6

177.1 19.5 22.1 60.6 49.8 25.1 14.7

192.4 21.2 24.1 65.8 54.1 27.2 15.9

18
increased the minimum open land requirement. enterprise consideration, ative enterprise B. However, within the same the rel-

changing the land value did not change

organization.

Specified Labor Prices The farm organization for the base situation required labor. only a small

quantity

of hired seasonal labor and no hired regular

Therefore,

increasing the labor price had a small effect requirement (Table 5).

on the minimum open land increased the minimum recombin-

Doubling the labor price

quirement by 5 acres, but did not change

the relative

enterprise

ations.

Estimated Minimum Open Land Requirements and Enterprise OrganiTable 5. zation for a $5,000-Return to Operator's Labor and Management, Specified Labor Prices, Base Land Price, 31.2 Cents Per Pound of Lint Cotton, 100 Per cent Allotment, Wiregrass Area of Alabama

Item

Unit Basea

Labor price per hour Base plus 100/0 Base plus 50%

Total land Cotton Peanuts Corn Oats Corn for silage Pasture and hay Steers Sows

acres acres acres acres acres acres acres no. no.

135.0 14.8 16.9 38.6 31.4 7.6 25.7 32.0 5.7

137.4 15.1 17.2 39.3 32.0 7.7 26.1 32.6 5.8 per acre land,

140.0 15.4 17.5 40.1 32.6 7.8 26.6 33.2 5.9 and Coastal

See Table 4 with $105 abase program. bermuda hay selling excluded.

19
C. Specified Cotton Prices and Allotment Levels With a cotton price of 20.8 cents per pound of (Table 6). lint, no cotton entered consisted

the optimum farm organization

The optimum organization

of peanuts, corn, oats, steers, and sows, and the minimum open land requirement was 154 acres. With a cotton price of 26 cents per pound of lint, cotton entered the

optimum organization at the maximum limit of the allotment. open land requirement decreased from 147.4 acres to 146.4

The minimum to 145.2 acres

as the cotton allotment level increased from 85 to 100 to 115 per cent of the 1963 allotment level. The small decrease in minimum open land requireis about

ment-when the cotton allotment increased indicated that 26 cents the break-evenpoint for cotton. With a price of 31.2 and 36.4 cents per pound of lint,

cotton was

produced at the limit of the allotment, and minimum open land requirements decreased more rapidly as the cotton allotment level increased. cotton at 31.2 cent, the minimum requirement decreased when the allotment level was 55 per cent to 132.4 ment was 115 per cent of the current level. from 142.8 With acres

acres when the allotcotton price

At a 36.4-cent

the minimum open land requirement decreased

from 136.6 acres with the

allotment level at 55 per cent to 125.2 acres with the current allotment level. At the current decreased allotment level the minimum open land requirement

from 154 acres with cotton at 20.8 cents to 125...2 ... cres with a No cotton was planted at ·the 20.8 cent price,

cotton price of 36.4 cents.

but allotments were fully planted at the other 3 price

levels.

20
Table 6. Estimated Minimum Open Land Requirements and Enterprise Organization for a $5,000 Return to Operator's Labor and Management, Specified Levels of Cotton Prices and Allotments, Base Land and Labor Prices, Wiregrass Area of Alabama

Item

Unit

Allotment 55

level (percentage 85

of 1963 allotment) 100115

Cotton pricea
20.8 cents Total land Peanuts Corn Oats Corn silage Pasture and hay Steers Sows 26.0 cents Total land Cotton Peanuts Corn Oats Steers Sows Corn silage Pasture and hay 31.2 cents Total land Cotton Peanuts Corn Oats Steers Sows Corn silage Pasture and hay 36.4 cents Total land Cotton Peanuts Corn Oats Steers Sows Corn silage Pasture and hay acres acres acres acres acres acres no. no. 154.0 19.2 61.0 29.7 8.6 35.5 36.4 11.8 154.0 19.2 61.0 29.7 8.6 35.5 36.4 11.8

acres acres acres acres acres no. no. acres acres

147.4 13.9 18.4 44.5 33.4 34.9 7.0 8.2 29.0

146.4 16.1 18.3 41.9 34.0 34.6 6.2 8.2 27.9

145.2 18.5 18.2 39.1 34.7 34.4 5.4 8.1 26.6

acres acres acres acres acres no. no. acres acres

142.8 8.7 17.9 47.9 30.7 33.8 8.2 8.0 29.6

137.4 12.9 17.2 41.5 31.2 32.6 6.5 7.7 26.9

13 5

.0 b 14.8 16.9 38.6 31.4 32.0 5.7 7.5 25.8

132.4 16.8 16.6 35.6 31.6 31.4 4.9 7.4 24.4

acres acres acres acres acres no. no. acres acres

136.6 8.3 17.1 45.8 29.4 32.4 7.8 7.6 28.4

128.7 12.1 16.1 38.9 . 29.2 30.4 6.1 7.2 25.2

125.2 13.8 15.7 35.8 29.1 29.6 5.3 7.0 23.8

aper pound of lint. bBase program.

21
Adjustments in Farm Numbers Further analysis was made to determine the effect on the number of farms in the area if all farms were at least the minimum size required to In determin-

obtain the $5,000 return to operator labor and management. ing this, it is

assumed that those farms now having open land acreage and that all

above the minimum requirement would make no adjustment,

open land currently in farms with acreages less than the minimum requirement would be recombined the return under the specified into farms of the size required conditions. 20,070 farms data, it in the 12-county to yield

The 1959 Census of Agriculture listed area. From the Soil Conservation Service

was determined that On the basis of according to size open land acreage From these data a

there are 1,712,378 acres of open land in available data, the farms in

the area.

the area were distributed

in open land acreage. in

From this distribution, the total to the various size groups.

the area was distributed

cumulative distribution curve was constructed from which can be determined the percentage size (Figure 2). This curve was used to determine, for each of the various programmed of farms and of open land area in farms below a specified

situations, the number of farms that are currently larger than the minimum size required and the acreage of open land that than the minimum... acreage required acreage required was .divided is in farms having less The minimum

to yield the $5,000 return. in

into the open land acreage

farms below the

minimum size to determine number of minimum size farms that could exist on this acreage. This adjusted number of farms added to the number of level gives the number of farms which would

farms currently above this exist after adjustment.

22

Per cent of farms 100

Size of farm (open acres) -750 299 -193 162 138.6 -128 - 121 112

74 60

50 44 40

30

29

20 13 10

0

10

20

30

40

50

60

70

80

90

100

Per cent of open land

Fig.

2.
land

Cumulative distribution of number of farms and associated
in each farm size category, Wiregrass Area of Alabama,

open-

1959.

23 The calculations to determine the adjustments in farm numbers for each Tables 9 through 12. change

of the programmed situations

are shown in Appendix B,

To show the magnitude of the required adjustments, the percentage for each situation is shown The minimum change all activities in in Table 7.

number of farms ranged from 43.4 per cent when and no return selling, For

including Coastal hay selling were considered to a high of 62.3 per cent when Coastal land was valued

to land was required,

hogs, and steers were excluded and

at $210 per acre.

the base situation the minimum reduction in farm numbers would be 52.8 per cent.

Implications
Cotton and peanuts were the two most profitable crops grass area. lint for the Wireof

The cotton price was reduced below 26 cents per pound replaced it in the organization. indicated Peanut

before any alternative

prices were not varied, but other research (5) has

that the

peanut price would probably have to be reduced by a larger percentage before other enterprises would replace them.

Large acreages

of Coastal bermudagrass hay to be sold were produced hay selling. If the yields assumed for this

when the program permitted study come (5 tons per acre)

were attained,

Coastal hay for sale would beand cotton. However, the ...area, When a

the most profitable enterprise such large quantities of a market

after peanuts

at present, nor is market

of hay ...are not produced in for such a large volume. many farmers

there evidence

for Coastal hay develops,

can make a profitable

adjustment to hay production. Hogs are condition. the most profitable livestock enterprise it under the assumed

With the price

level assumed,

was more profitable to feed

24
Table 7. Percentage Decrease from Present Number of Farms Consistent With a $5,000 Operator Return, Specified Programming Assumptions, Wiregrass Area, Alabama

A.

Cotton allotment at 1963 level, cotton price at 31.2 cents per pound, labor at base price

Enterprises considered 0

Land price per acre (dollars) 52.5 105 157.5 210 (percentage decreasein number of farms)

All enterprises including Coastal hay selling Coastal selling not permitted Coastal selling, hogs and steers not considered

43.4

46.1

48.1

50.1

52.2

48.4

50.7

52.8

54.8

56.5

--

56.1

58.5

60.6

62.3

B.

Land and labor price at current mitted

level,

Coastal hay selling not per-

Cotton allotment (Per cent of 1963 level) 55 85 100 115

Cotton price (cents 26.0 20.8

per pound of lint) 31.4 36.4

(Percentage decrease)

56.7 56.7

55.3 55.1 55.0

54.6 53.2 52.8 52.0

53.0 51.1 50.2

C.

Cotton allotment and price at current Coastal hay selling not permitted

level,

land at current

level,

Labor price (percentage

of base)

100
52.8

150
53.2

200
53.3

25
corn to hogs than to sell it as grain. Beef cows and steers entered the

enterprise organization to utilize roughage grown on the unplowable open land. No other alternative was available for such land. Very little labor was hired in any of the program results. There-

fore it seems possible that with good management and organization, an operator-labor income of at least $5,000 can be obtained on a farm falling However, since 79 per cent of the farms in

in the family-farm category.

the area at present do not have the minimum required acreage, many farms would have to become larger if this income is obtained. quire some consolidation of farms and some farmers If it This would re-

leaving agriculture.

is desirable for farmers to obtain at least a $5,000-operator-

labor income, there are two further problems unanswered by these results. (1) How are the farms to be consolidated and where are farmers to get the to consolidate, and (2) where and how are

means (capital, machinery, etc.)

those persons who do not remain in agriculture going to locate gainful employment. The first question could lead to a study of the financial management position of farmers, terns of the credit structure of the area, and sociological patIt also leads to policy alternatives of

local communities.

letting the "free" the fittest, or The

enterprise system operate and have the survival of is done.

letting society set the rules and determine what

second question is equally perplexing.

Low-income farming areas

are often removed from urban development. are not well trained or educated.

Also, many low-income farmers

Therefore, the opportunity for gainful

employment often requires both training in the desired skill and moving to another location. Neither of these is easily obtained especially when the
-

average farm operator is over 45 years of age

"too old to learn new tricks

26
and too well rooted to pull up and move." not simple. The solution of the problem is

27

Literature Cited i. Alabama Agricultural Statistics, Alabama Department of Agriculture and Industries cooperating with U. S. Department of Agriculture, Bul. 10, June 1960.
, Alabama Department of Agriculture

2.

and Industries cooperating with U. Bul. 11, July 1962. 3.

S.

Department of Agriculture

Clark, George W. and Partenheimer, Earl J., Cost and Returns from Crop Production in the Wiregrass Area (Lower Coastal Plains) of Alabama. Auburn University Agricultural Experiment Station in Cooperation with Farm Economics Division, Economic Research Service, U. S. Department of Agriculture, August 1961. Partenheimer, Earl J. and Clark, George W., Cost and Returns from Livestock Production in the Wiregrass Area (Lower Coastal Plains)of Alabama. Auburn University Agricultural Experiment Station in Cooperation with Farm Economics Division, Economic Research Service, U. S. Department of Agriculture, December 1961. Partenheimer, Earl J. and Strickland, P. L., Jr., Optimum Farm Organization and Aggregate Area Production, Wiregrass Area of Alabama. Auburn University Agricultural Experiment Station in Cooperation with Farm Production Economics Division, Economic Research Service, U. S. Department of Agriculture, Agricultural Economics Series 3, March 1964. State Soil Conservation Committee, Alabama Soil and Water Conservation Needs Inventory. Soil and Water Conservation Service, 1961.

4.

5.

6.

29

APPENDIX A

Appendix A,

Table 1.

Assumed Base Prices Received by Farmers, Area of Alabama

Wiregrass

Item

Unit

Price Dollars

Crops Lint cotton Cottonseed Peanuts Corn (grain) Grain sorghum Soybeans Oats Wheat Coastal bermudagrass hay Livestock Hogs Sows Boar Calves Cull cows Bull Steers

lb. ton ton bu. bu. bu. bu. bu. ton

0.312 50.00 198.00 1.05 1.05 2.00 0.81 1.80 20.70

cwt. cwt. cwt. cwt. cwt. cwt. cwt.

16.00 13.00 6.00 22.00 15.50 18.00 24.00

Bulletin 11, Division of Based on "Alabama Agricultural Statistics," Department of Agriculture and Industries, Alabama Agricultural Statistics, Reporting Service, U. S. Department of in cooperation with Statistical 1962. Agriculture, July

30
Appendix A, Table 2. Assumed Base Prices Paid by Farmers, of Alabama Wiregrass Area

Item

Unit

Price Dollars

Seed Cotton (acid delinted) Peanuts (Early Runner, certified) Corn, hybrid Grain sorghum, hybrid Soybeans Oats, certified Wheat, certified Bahia grass Millet Rye Fertilizer 4-12-12 0-10-10 0-20-20 0-14-14 Ammonium nitrate Pesticides 3% BHC, 5% DDT 20% toxaphene, 10% DDT 4 lb. toxaphene, 2 lb. DDT Copper, sulfur, 2.5% DDT Copper, sulfur, 5% DDT 10% DDT Karmex (3 lb. equivalent) CIPC (41b. equivalent) Post-emergence oil 2-4, D Amine (4 lb. equivalent) Feed and feed additives Peanut hay (includes hauling) Protein supplement (hog, 40% protein, commercial mix) Soybean meal (44% protein) Meat and bone scraps (50% prote in) Cottonseed meal (41% protein) Alfalfa meal (17% protein)

cwt. lb. lb. lb. bu. bu. bu. lb. lb. bu.

17.60 0.26 0.17 0.19 3.50 1.50 4.25 0.32 0.14 4.00

cwt. cwt. cwt. cwt. cwt.

1.90 1.70 2.35 1.65 3.80

cwt. cwt. gal. cwt. cwt. cwt. gal. gal. gal. gal.

7.50 14.00 2.80 8.50 8.50 7.25 18.00 8.35 0.35 3.90

ton cwt. cwt. cwt. cwt. cwt.

17.00 5.00 4.00 5.00 3.60 4.10 (Continued)

31
Appendix A, Table 2. (Continued) Assumed Base Prices Paid by Farmers, Wiregrass Area of Alabama

..

Item

Unit

Price Dollars

Feed and feed additives

(Continued)
Wheat middlings Molasses (cane) Vitamin mixture (hogs) Dicalcium phosphate Antibiotic (hog) Salt Loose Swine formula .Mineralized 50 lb. .blocks Custom work Apply cotton defoliant by plane (does not include materials) Picking cotton (machine) Ginning cotton (bagging & ties) Applying lime (includes materials) Labor Resident Seasonal Miscellaneous costs Land (interest and taxes at base price) Defoliant Shelling corn Mixing supplement Grinding and mixing feed Truck use Hauling feed and livestock Hauling hay Hauling silage Hauling livestock only Stilbestrol implants Phenothiazine Insecticide (cattle) cwt. cwt. lb. cwt. lb. cwt. cwt. blk. 3.40 1.50 0.40 4.00 0.90 1.80 2.80 1.55

lb. lb. of lint bale ton

0.06 0.06 13.00 7.75

hr. hr.

1.00 0.60

acre lb. bu. cwt. cwt. mile ton ton cwt. head lb. head

6.25 0.07 0.15 0.10 0.30 0.15 0.60 0.40 0.25 0.07 0.70 0. 18.

32
Appendix A, Table 3. Assumed Annual Overhead Cost Per Farm, ment, Wiregrass Area of Alabama 2-Row Equip-

Item

Cost

Dollars
Taxes, insurance, interest and housing Planting equipment Cultivating equipment 1-row corn picker Grain elevator Peanut digger-shaker Peanut combine Combine and grain drill Rotary mower Truck charge Telephone Bookkeeping and tax service Liability insurance

176.18 40.05 54.00 16.88 20.25 135.00 115.00 19.35 250.00 20.00 20.00 30.00

Total annual overhead cost

896.71

33

APPENDIX B

FARM BUSINESS

SUMMARIES FOR THE PROGRAMMED SITUATIONS

Linear programming techniques were used to determine the minimum acreage of open land that would be required labor and management to yield a $5,000 net return set of assump-

to a farm operator's tions.

under a specified

As a byproduct of the results, it was possible to determine the the amount of labor

optimum combination of enterprises on this acreage, and capital required of the production. All of the above data are summarized of the solutions results in for this organization,

and the receipts and expenses

in the following tables. labor and

Each

a $5,000 return to operator's

management. change the in one

Each solution differs from any other or more specific assumptions.

solution because title

of

Each table

specifies

fixed assumptions

for that group of solutions.

Appendix B, Table 1. Assumptions: Cotton Price, 31.2 Cents Per Pound of Lint; Cotton Allotment, 100 Per Cent of Current; Labor Price, Current; all Enterprises Including Hay Selling Considered; Land Price at Specified Values

Item

Unit $0 $52.50 .

Land price per acre $105 $157 50

$210

Total open land Cotton Peanuts Corn Coastal Pasture for hogs Sows Operator labor Seasonal labor Investment Land Machinery Operating capital Total capital required Gross receipts Operating and overhead..expense Land costs Return to operator's labor and management .dol.

acre acre acre acre acre acre no. hour hour

104.9 11.5 13. 1 14.7 60.3 5.3 4.6 1,040 797

110.1 12.1 13.8 15.4 63.3 5.5 4.8 1,092 837

115.9 12.8 14.5 16.2 66.6 5.8 5.1 1,149 881

122.3 13.5 15.3 17.1 70.3 6.1 5.4 1,213 930

129.5 14.2 16.2 18.1 74.4 6.6 5.7 1,284 984

dol.
dol. dol. dol. dol. dol. dol.

-6,408 1,760 8,168 13,511 8,406 105 5,000

5,780 6,408 1,846 14,034 14,186 8,787 399 5,000

12,170 6,408 1,948 20,526 14,935 9,211 724 5,000

19,622 6,408 2,058 28,088 15,759 9,656 1,103 5,000

27,195 6,408 2,174 35,777 16,680 10,190 1,490 5,000

A

ni

,Tbe2

sumtos

otnPie

I

\p~edixB, Cents ssumtios:PoundPrce,31.2 Cotton Allotment, Tble2. Per otto of Lint;

100 Per

I
4 jtem

Cent

of

Current; Labor Price, Current; Hay Selling Excluded; Land Price at Specified
Values

Land price per acre
Unit $0

$52-50
127.2 14.0 15.9 36.4 29.6 7.1 18.0 6.2 30.1 5.4 1,183
333

$105

T --al open land Cotton 'eanuts

~Corn
Oats Thorn silage Pasture and hay for steers asture for hogs Steers S
SeJs

acre acre acre acre acre acre acre acre no.
no..

120.3 13.2 15.0 34.4 28.0 6.7 17.1 5.9 28.4 5.1 1,119
315

135.0 14.8 16.9 38.6 31.43 7.5 19.2 6.6 32.0 5.7

0rnerator labor Seasonal labor

hour
hour

1,255

354137140

Capital
'Land

Machinery Operating Total capital required
Goss receipts

-dol. dol.6,048 5,944 dol.

6, 678 6,408 6 ,288 19,374

14,175 6,408 6,408 6,6737,0759 27,256
21,113

22632,7
4,7 7,6

dol.
dol.

12,352

18,810
13,690 120
5,000

19,94
14,433 461
5,000,0500

36,4
22,7;2,3

'0perating and overhead expense =Land cost ;:Return to operator's labor and

do-l. dol.
dol.

1620 15,269 8441,7176
5,000

management

w,

37 Appendix B, lint; Table 4. Assumptions: Cotton Price, 31.2 Cents per Pound of Cotton Allotment, 100 Per Cent of Current; Land Price, Current; Hay Selling Excluded; Labor Price at Specified Values

Item

Unit

Current

Labor price per hour Plus 50 per cent

Plus 100 per cent

Total open land Cotton Peanuts Corn Oats Corn silage Pasture and hay for steers Pasture for hogs Steers Sows Operator labor Seasonal labor Capital Land Machinery Operating Total capital required Gross receipts Operating and overhead expense Land cost Return to operator's labor and management

acre acre acre acre acre acre acre acre no. no. hour hour

135.0 14.8 16.9 38.6 31.4 7.5 19.2 6.6 32.0 5.7 1,255 354

137.4 15.1 17.2 39.3 32.0 7.7 19.4 6.7 32.6 5.8 1,278 360

140.0 15.4 17.5 40.1 32.6 7.8 19.8 6.8 33.2 5.9 1,302 367

dol. dol. dol. dol. dol. dol. dol. dol.

14,175 6,408 6,673 27,256 21,113 15,269 844 5,000

14,427 6,408 6,798 27,633 21,507 15,649 858 5,000

14,700 6,408 6,923 28,031 21,902 16,027 875 5,000

38
Appendix B, Table 5. Assumptions: Cotton Allotment, 55 Per cent of Current; Land and Labor Prices, Current; Hay Selling Excluded; Cotton Prices at Specified Levels

Item

Unit

Cotton price per pound of lint 31.2 36.4 cents cents

Total open land Cotton Peanuts Corn Oats Corn silage Pasture and hay for steers Pasture for hogs Steers Sows Operator Seasonal labor labor

acre acre acre acre acre acre acre acre no. no. hour hour

142.8 8.7 17.9 47.9 30.7 8.0 20.2 9.4 33.8 8.2 1,432 370

136."6 8.3 17.1 45.8 29.4 7.6 19.4 9.0 32.4 7.8 1,370 354

Capital Land Machinery Operating Total capital required Gross receipts Operating and overhead expense Land cost Return to operator's labor and management

dol. dol. dol. dol. dol. dol. dol. dol.

14,994 6,408 7,150 28,552 22,347 16,454 893 5,000

14,343 6,408 6,841 27,592 21,638 15,784 854 5,000

39
Cotton Allotment, 85 Per Cent of CurAppendix B, Table 6. Assumptions: rent; Land and Labor Prices, Current; Hay Selling Excluded; Cotton Prices at Specified Levels

Item

Unit

Cotton price per pound of lint 26.0 31.2 36.4 cents cents cents

Total open land Cotton Peanuts Corn Oats Corn silage Pasture and hay for steers Pasture for hogs Steers Sows Operator labor Seasonal labor Capital Land Machinery Operating Total capital required Gross receipts Operating and overhead expense Land cost Return to operator's labor and management

acre acre acre acre acre acre acre acre no. no. hour hour

147.4 13.9 18.4 44.5 33.4 8.2 21.0 8.0 34.9 7.0 1,406 385

137.4 12.9 17.2 41.5 31.2 7.7 19.4 7.5 32.6 6.5 1,311 359

128.7 12.1 16.1 38.9 29.2 7.2 18.2 7.0 30.4 6.1 1,227 336

dol. dol. dol. dol. dol. dol. dol. dol.

15,477 6,408 7,319 29,204 22,634 16,713 921 5,000

14,427 6,408 6,826 27,661 21,504 15,646 858 5,000

13,514 6,408 6,388 26,310 20,506 14,701 805 5,000

40
Appendix B, Table 7. Assumptions: Cotton Allotment, 100 Per cent of Current; Land and Labor Prices, Current; Hay Selling Excluded; Cotton Prices at Specified Levels

Item

Unit

20.8 cents

Cotton price per pound of lint 26.0 31.2 36.4 cents cents cents

Total open land Cotton Peanuts Corn Oats Corn silage Pasture and hay for steers Pasture for hogs Steers Sows Operator labor Seasonal labor Capital Land Machinery Operating Total capital required Gross receipts Operating and overhead expense Land cost Return to operator's labor and management

acre acre acre acre acre acre acre acre
no. no.

154.0 19.2 61.0 29.7 8.6 21.9 13.6 36.4 11.8 1,683 393

146.4 16.1 18.3 41.9 34.0 8.2 20.8 7.1 .34.6 6.2 1,361 383

135.0 14.8 16.9 38.6 31.4 7.5 19.2 6.6 32.0 5.7 1,255 354

125.2 13.8 15.7 35.8

29.1
7.0 17.7 6.1 29.6 5.3

hour hour

1,164 328

dol. dol. dol. dol. dol. dol. dol. dol.

16,170
6,408 7,829 30,407 24,105 18,143 962

15,372

6,408
7,237

29,017
22,399 16,484 915

14,175 6,408 6,673 27,256 21,113 15,269

13,146 6,408 6,193 25,747 20,017 14,235 782
5,00

844
5,000

5,000

5,000

41
Cotton Allotment, 115 Per Cent of CurAppendix B, Table 8. Assumptions: rent; Land and Labor Prices, Current; Hay Selling Excluded; Cotton Prices at Specified Levels

Item

Unit

Cotton price per pound of lint 31.2 26.0 20.8 cents cents cents

Total open land Cotton Peanuts Corn Oats Corn silage Pasture and hay for steers Pasture for hogs Steers Sows Operator labor Seasonal labor Capital Land Machinery Operating Total capital required Gross receipts Operating and overhead expense Land cost Return to operator's labor and management

acre acre acre acre acre acre acre acre no. no. hour hour

154.0 19.2 61.0 29.7 8.6 21.9 13.6 36.4 11.8 1,683 393

145.2 18.5 18.2 39.1 34.7 8.1 20.4 6.2 34.4 5.4 1,314 382

132.4 16.8 16.6 35.6 31.6 7.4 18.8 5.6 31.4 4.9 1,198 348

dol. dol. dol. dol. dol. dol. dol. dol.

16,170 6,408 7,829 30,407 24,105 18,143 962 5,000

15,246 6,408 7,153 28,807 22,152 16,245 907 5,000

13,902 6,408 6,520 26,830 20,715 14,888 827 5,000

Appendix B, Table 9. Optimum Number of Farms, Minimum and Percentage Changes Consistent With a $5,000 Return, Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Land Prices and Enterprise Exclusions, Wiregrass Area of Alabama

Land price and enterprise assumptions

1959 level

Minimum open land requirement per farm

Presently above minimum requirement

Resources to be adjusted

Maximum possible on adjustable resources

after

Minimum change in farm

adjustment numbers

All Activities

Considered

Land $0 per acre Number of farms Open land acres Per cent Land $52.50 per acre Number of farms Open land acres Per cent Land $105 per acre Number of farms Open land acres Per cent Land $157.50 per acre Number of farms Open land acres Per cent Land $210 per acre Number of farms Open land acres Per cent

20,070 1,712,378

104.9

5,401 1,087,360

14,966 625,018

5,958 624,994

11,359
1,712,354

-8,711
-43.4

20,070

1,712,378

110.1

4,747 1,044,551

15,323 667,827

6,065 667,757

10,812
1,712,310

-9,258 -46.1

20,070 1,712,378

115.9

4,355 1,010,302

15,715 702,075

6,057
702,007

10,412 1,712,309

-9,658 -48.1

20,070 1,712,378

122.3

3,958 964,069

16,112 748,309

6,118 748,231

10,006 1,712,300

-10,064 -50.1

20,070 1,712,378

3,638 129.5

940,096

16,432 772,282

5,963 772,208

9,601 1,712,304

-10,469 -52.2

Appendix B, Table 10. Optimum Number of Farms, Minimum and Percentage Changes Consistent With a $5,000 Return, Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Land Prices and Enterprise Exclusions, Wiregrass Area of Alabama

Land price and enterprise assumptions

1959 level

Minimum open land requirement per farm

Presently above minimum requirement

Resources to be adjusted

Maximum possible on adjustable resources

Minimum Resources after in farm adjustment numbers

Coastal Hay Selling Excluded Land $0 per acre Number of farms Open land acres Per cent Land $52.50 per acre Number of farms Open land acres Per cent Land $105 per acre Number of farms Open land acres Per cent Land $157.50 per acre Number of farms Open land acres Per cent

20,070 1,712,378

120.3

4,134 964,069

15,936 748,309

6,220 748,266

10,354 1,712,335

-9,716 48.4

20,070 1,712,378

127.2

3,813 938,383

16,257 773,995

6,084 773,884

9,897 1,712,267

-10,173 -50.7

20,070 1,712,378

135.0

3,519 907,560

16,551 804,818

5,961 804,735

9,480 1,712,295

-10,590 -528

20,070 1,712,378

143.7

3,050 847,627

17,020 864,751

6,017 864,643

9,067 1,712,270

-11,003 -54.8

(Continued)

LA)

(Continued) Optimum Number of Farms, Minimum and Percentage Changes Consistent With Appendix B, Table 10. a $5,000 Return, Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Land Prices and Enterprise Exclusions, Wiregrass Area of Alabama

Land price and enterprise assumptions

1959 level

Minimum open land requirement per farm

Presently above Resources minimum to be requirement adjusted

Resources Maximum possible on adjustable after resources adjustment

Minimum change in farm numbers

Land $210 per acre Number of farms Open land acres Per cent Hogs and Steers Excluded Land $52.50 per acre Number of farms Open land acres Per cent Land $105 per acre Number of farms Open land acres Per cent Land $157.50 per acre Number of farms Open land acres Per cent Land $210 per acre Number of farms Open land acres Per cent
i r i-

20,070 1,712,378

153.7

2,669 779,132

17,401 933,246

6,071 933,113

8,740 1,712,245

-11,330 -56.5

20,070 1,712,378

152.7

2,769 789,406

17,301 922,972

6,044 922,919

8,813 1,712,325

-11,257 -56.1

20,070 1,712,378

2,488
164.0 753,446

17,582
958,932

5,847

958,908

8,335 1,712,354

-11,735
-58.5

20,070 1,712,378

177.1

2,308 719,198

17,762

993,180

5,608 993,177-

7,916 1,712,375

-12,154 -60.6

20,070 1,712,378

192.4
y

2,047 667,827

18,023 1,044,551

5,429 1,044,540

7,476 1,712,367

-12,594 -62.8

Optimum Number of Farms, Minimum and Percentage Changes Consistent With a $5,000 Appendix B, Table 11. Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Return, Hired Labor Prices , Wiregrass Area of Alabama

Minimum

Presently

labor prices

level

be above Assumed 1959 open land minimumadjustable requirement perfarm requirement adjusted

Resources

Maximum possible on resourcesnumbers

Resources

Minimum change in farm

Base labor price Number of farms Open land acres Per cent

20,070 1,712,378

135.0

3,519 907,560

16,551 804,818

5,961 804,735

9,480 1,712,295

-10,590 -52.8

Base labor price plus 50 per cent 20,070 Number of farms 1,712,378 Open land acres Per cent-53.2 Base labor price plus 100 per cent 20,070 Number of farms 1,712,378 Open land acres Per cent

137.4

3,412 890,436

16,658 821,942

5,982 821,927

9,394 1,712,363

-10,676

140.0

3,371 873,312

16,699 839,066

5,993 839,020

9,364 1,712,332

-10,706 -53.3

Ul

Appendix B, Table 12. Optimum Number of Farms, Minimum and Percentage Changes Consistent With a $5,000 Return, Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Cotton Prices and Allotment Levels, Wiregrass Area of Alabama

Assumed Assumed cot Lon cotton
prices and

1959 level

Minimum open land requirement per farm

Presently above minimum requirement

Resocs Resources to be
adjusted

Maximum possible on adjustable resources

Resorce
after adjustment

Minimum change in farm numbers

allotments

20.8 cents, 100 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 26.0 cents, 85 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 26.0 cents, 100 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 26.0 cents, 115 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 31.2 cents, 55 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent

154.0

2,629 777,420

17,441 934,958

6,071 934,934

8,700 1,712,35

-11,370 -56.7

147.4

2,930 821,941

17,140 890,437

6,040 890,296

8,970 1,712,237

-,00 -55.3

146.4

2,990 830,503

17,780 881,875

6,023 881,767 ..

9,013 1,712,270

-11,057 55.1

145.2

3,010 839,065

17,060 973,313

6,014 873,233

9,024 1,712,298

-11,046 -55.0

142.8

3,150 859,614

16,920 852,764

5,971 852,659

9,121 1,712,273

-10,949 -54.6 (Continued)

Appendix B, Table 12. (Continued) Optimum Number of Farms, Minimum and Percentage Changes Consistent With a $5,000 Return, Adjusted for Farm Units Above the Minimum Land Requirement Level, Specified Cotton Prices and Allotment Levels, Wiregrass Area of Alabama

Assumed cotton prices and allotments

1959 level

Minimum open land requirement per farm

Presently above minimum

Maximum Resources to be possible on adjustable resources Resources after adjustment

Minimum change in farm numbers

requirement adjusted

31.2 cents, 85 per cent allotment Number of farms 20,070 Open land acres 1,712,378 Per cent 31.2 cents, 100 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 31.2 cents, 115 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 36.4 cents, 55 per cent allotment Number of farms 20,070 1,712,378 Open land acres Per cent 36.4 cents, 85 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent 36.4 cents, 100 per cent allotment 20,070 Number of farms 1,712,378 Open land acres Per cent
-A

137.4

3,412 890,436

16,658 821,942

5,982 821,927

9,394 1,712,363

-10,676
-53.2

135.0

3,519 907,560

16,551 804,818

5,961 804,735

9,480 1,712,295

-10,590 -52.8

132.4

3,653 919,547

16,417 792,831

5,988 792,811

9,641 1,712,358

-10,429 -52.0

136.6

3,472 897,286

16,598 815,092

5,966 814,956

9,438 1,712,242

-10,632 -53.0

128.7

3,773 934,958

16,297

777,420

6,040 777,348

9,813 1,712,306

-10,257 -51.1

125.2

3,873 946,945

16,197 765,433

6,113 765,348

9,986 1,712,293

-10,084 -50.2